A term that has been thrown around in the crypto communities noticeably as of late is cloud mining. This phenomenon seems to have taken over the cryptocurrency mining world - every day, more and more people seem to pitch into the activity that is cloud mining. Because of this, it is becoming progressively harder to mine certain specific crypto coins. That’s why today I want to tell you about Litecoin cloud mining.
We’ll start from the definitions - what’s Litecoin and what’s cloud mining. I’ll tell you about Litecoin’s benefits and why it’s worth mining in the first place. After that, we’ll cover some of the most popular places where people tend to go when thinking about cloud mining Litecoin.
However, before doing that, you should know that there are way easier ways to get Litecoin. Simply choose a secure cryptocurrency exchange for buying or trading Litecoin. A few options that you should take into account include Binance, Coinbase, Kraken, and Coinmama.
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Now, let's find out more about Litecoin.
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Table of Contents
What is Litecoin?
Litecoin is decentralized crypto that has its blockchain. Being decentralized means that it doesn’t belong to anyone specific person or organization - it has no central leader.
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Litecoin is open-source, which means that anyone and everyone can contribute to the coins' well-being and development.
What makes this crypto unique is its relationship with Bitcoin. Litecoin was initially a spin-off of Bitcoin, having almost identical data and parameters. However, there’s a catch - Litecoin is around four times faster than Bitcoin. In the grand scheme of things, this is very significant.
Four times faster usually equates to being four times more attractive. In Litecoin's case, this also means that it aims to have four times more coins than Bitcoin.
From the very beginning, Litecoin was intended as an upgraded, superior version of Bitcoin.
What is Cloud Mining?
Now that we’ve covered some basic information on Litecoin, let’s move on to cloud mining.
To put it into simple terms, cloud mining is a process where you pay someone to rent out a mining rig and its services. There are usually two parties attending this process - the buyer and the host.
Let’s say that you, as a buyer, are looking for ways to profit from cryptocurrencies. Investing in stocks requires a hefty sum upfront (at least to notice any type of profit), you lack knowledge in the blockchain development area to pitch in there… But after some time you stumble upon an internet site offering cloud mining services.
Hosts (the people that own the cloud mining service) are usually big corporations. It’s quite rare to find a single person who would offer cloud mining services, although it isn’t impossible.
Most of the time, the hosts own a few farms. A farm is simply a facility that’s filled with cryptocurrency mining rigs. When you want to strike a deal with the host, you simply rent out the rig in one of the farms for an agreed-upon amount of time.
More Than the Rig
A mining rig isn’t the only thing you rent out, though. You would also rent out the space to keep it in and the management and maintenance services.
You and the host agree upon a specific time for the rent. This could be anywhere from three months up to a lifetime (although the latter one’s quite rare). Most cloud mining hosts offer monthly payouts.
A maintenance and electricity bill is taken out of your earnings (these are calculated in various ways; it depends on each host) and the rest of your earnings are transferred to a crypto wallet of your choice.
Cloud mining (including Litecoin cloud mining) is considered to be beneficial for a couple of reasons. First of all, it’s super easy. All you have to do is buy the service online and wait.
Some higher-end cloud mining hosts offer additional perks, i.e. around-the-clock farm surveillance via a live stream on the internet, so you might want to check it out. Other than that, your work at this point is done - the host takes care of the rest.
Cloud mining is also beneficial to both the host and (most) of the cryptocurrencies out there (at least decentralized, open-source ones). Hosts make good amounts of profit and can continue to evolve their farms.
The cryptocurrencies themselves benefit from this by staying in a state of active demand - this boosts up their market positions and brings more attention to them.
Litecoin Cloud Mining
So now that you have a general idea both about Litecoin and the process of cloud mining… Why would someone want to deal with Litecoin cloud mining? Keep in mind that whichever option you pick, you'll also need a reliable hardware wallet to protect your coins. That said, if you value your security, you should check out Ledger Nano X and Trezor Model T.
The reasoning behind this is pretty simple - the availability and accessibility of Litecoin.
As I’ve mentioned earlier, Litecoin is four times faster than Bitcoin. Let’s use this example.
The biggest problem with Bitcoin when it comes to cloud mining is that it’s very difficult to mine - it takes a lot of time and significant energy consumption to mine a noticeable amount of Bitcoins. This is due to a few reasons, but the biggest ones are probably supply and demand.
With Bitcoin’s mainstream popularity and success, a lot of people want to pitch in on the hype. A big amount of people equate to a significant amount of miners. However, Bitcoin’s set market cap dictates the pace of the game - and with so many people involved, the pace is getting slower by the week.
Just as with some other altcoins, it’s a different story when it comes to Litecoin. There are a much higher supply and a considerably lower demand for Litecoin than it is for Bitcoin. This makes Litecoin cloud mining a lot easier and much more profitable than the other, mainstream cryptocurrencies.
Places to Mine
There are a lot of sites on the internet that offer Litecoin cloud mining services. The very first thing that you need to do before deciding on a cloud mining host is to figure out whether you want a free or a paid service. Yes, free cloud mining is a thing, but naturally, it has its drawbacks.
Hosts that offer free cloud mining usually provide little to no customer services when compared to the paid ones. Free cloud mining can be sketchy and risky - if you don’t know what you’re doing (or if you don’t do enough research), you might end up scammed.
Free cloud mining also tends to be a significantly slower process than the paid version. It might take months on end until you notice any amounts of profit.
With that being said, let’s cover some of the most popular sites for cloud mining Litecoin. The list isn’t put together in any specific order.
Mining Rig Rentals
Mining Rig Rentals is a US-based online cloud mining service. They offer a wide variety of (alt)coins to mine, including Litecoin.
The site is noteworthy in that it has no minimum orders, a very low withdrawal benchmark, it pays out the profits in up to twelve hours from the end of the rent and processes the payments super quick.
The site also offers a variety of mining pools to choose from - free of charge. One of the only drawbacks is that it struggles in the design department - the quality of the site still leaves some things to be desired.
Probably the best-known site on this list, Genesis Mining is a cloud mining company based in Hong Kong. They are very popular in the cryptocurrency world, mostly because of their mining services and innovative, state-of-the-art projects.
Genesis Mining offers a wide assortment of mining plans, so you can choose one according to your preferences. They also have an option for you to make your own, custom plan, which is a nice added, individual need-driven feature.
The company has a few huge farms scattered around the world. This is done mostly for security reasons, but it brings up the negative part of Genesis cloud mining - compared to other cloud mining hosts, Genesis Mining is noticeably costly. Clients also say that the company could brush up on their customer support, for it tends to be slow and not all that helpful.
An Estonia-based company, Hashflare, has built up a reputation over the years of a trustworthy, reputable cloud mining company. Services like Litecoin cloud mining and customer support are fully available.
Even though Hashflare is cool and transparent with their Litecoin cloud mining services, they do charge a maintenance fee. On the bright side, however, the company offers contracts with unlimited length - you could purchase one and be set for the rest of your life!
Another familiar name in the cryptocurrency world, Nice Hash offers high levels of security and a stable system for anyone thinking about becoming a potential customer.
Nice Hash is professional cryptocurrency miners, but a lot of people think that because of their difficult structure, this cloud mining site isn’t suitable for beginner miners. Another thing worth keeping in mind is that even though you can mine Litecoin, as of now, the company only offers Bitcoin payouts.
Choosing the Right Cloud Mining Host
These were just a few of the more notable Litecoin cloud mining service providers out there. There are tens of different cloud mining hosts (both free and paid) that are keen on offering their farms to your disposal. With so many choices, how does one choose a proper host for cloud mining Litecoin?
First of all, consider security as the utmost priority when it comes to choosing a host for Litecoin cloud mining. Imagine this situation: you pick a cloud miner, pay the initial fee, and at the end of the month you find out that not only your profits have been stolen, but somebody broke into your bank account (credit card, PayPal, etc.) and stole all of your savings…
All of this because you didn’t do your research and picked an untrustful, doubt-worthy host. Now, do you see the importance of security?
Another thing worth keeping in mind is the hash rate of the host’s rigs. If the hash rate of the farm is really low, but the prices that the host charges are through the roof, that is a clear indication that something’s not right. Always research the appropriate hash rates for the different types of rigs out there, or at least consult on online forums.
Lastly, get a general feel for the company. Visit their site (and many different parts of the site), look at their About page, read the White Paper, research some of the more notable people that are working there or are in some ways involved with the company.
If the general view of the company or site brings out feelings of trust within you, more often than not it’s a good deciding factor. Always place a priority on transparent hosts, for these companies usually have the least to hide.
At this point, you should probably have a better understanding of how Litecoin cloud mining works. It can be tricky at first, but if you set your mind to it, you'll figure it out in no time.
One more tip I can give you is that you should always first look for local cloud miners. See if there’s one in your country (maybe even the city?), contact them, and maybe even arrange a meeting. This has mutual benefits - you can support a local business, while the cloud mining host gets a customer. Besides, there’s usually more information available with local businesses than with online ones.
Concerning Litecoin cloud mining, do keep in mind that it’s a slow process. Sure, it’s much faster than, for example, Bitcoin, but it still takes some time to notice considerable revenue. Of course, it all depends on your subscription plan - the more money you pay, the faster the hash rate you get, thus increasing the speed of your potential earnings.
If you choose to delve with Litecoin cloud mining, I wish you the best of luck! Also, always make sure to keep your cryptocurrency in safe storages, such as cold wallets (take a look at Ledger Nano X and Trezor Model T). On top of that, if you find that cloud mining isn't exactly for you, there's always the option to purchase some LTC on one of the top-rated exchanges, such as Binance, Coinbase, or Kraken.